Flexible Solutions International Inc. · AMEX:FSI
Flexible Solutions International — Merger or Acquisition (April 2022)
25 slides from Flexible Solutions International's merger presentation, Apr 18, 2022
Slide 1: Introducing Lygos and the FSI/Lygos Merger Opportunity
Introducing Lygos and the FSI/Lygos Merger Opportunity Investor Presentatio Your Presenters: April pada, si 2022
Slide 2: Important Information & Disclaimer
Important Information & Disclaimer This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business com
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements other than statements of historical facts contained in this Presentation are forward-looking statements. Forward-looking statements may generally be identified by the use of words such as “believe,” *may,” “will,” “estimate,” “continue,” “anticipate,” “inten
Slide 4: Financial Information; Non-GAAP Financial Measures
FINANCIAL INFORMATION; NON-GAAP FINANCIAL MEASURES ‘The financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X promulgated under the Securities Act. Accordingly, such information and data may not be included in, may be adjusted in or may be
Slide 5: Better Products Through Biology
Better Products Through vu InadD iUE | We harness the power of biology to replace harmful industrial chemicals and create healthy, sustainable and biodegradable products for consumers PROPRIETARY and CONFIDENTIAL | LYGOS
Slide 6: Transaction Overview
Transaction Overview Background = Flexible Solutions International Inc. (NYSE: FSI) is a large consumer of aspartic acid that profitably supplies valuable products into multiple industries = Lygos is a private, high growth synthetic biotechnology company that creates a range of sustainable organic a
Slide 7: Investment Highlights
Investment Highlights bee > | Cutting Edge Technology Proprietary platform employing state-of-the-art genetic engineering and industrial fermentation technology Merger is Expected to Create Significant Vertical Synergies Opportunity to create new custom products for existing blue-chip customers and
Slide 8: Compelling Lygos / Flexible Solutions Synergy Opportunities
Compelling Lygos / Flexible Solutions Synergy Opportunities End-to-End Green Products Customer Whitespace Manufacturing Synergies Current FSI products are biodegradable but often Current sales only scratching surface of potential Modest capex can support up to ~2x growth in sourced from petrochemica
Slide 9: Combined Company Overview
Combined Company Overview LYGOsS
Slide 10: A Valuable Approach to Unsustainable production and legacy petrochemistry
A Valuable Approach to Unsustainable production and legacy petrochemistry
Slide 11: Management Team
11 Management Team ERIC STEEN, PhD BRYCE DILLE DANIEL O’BRIEN NICK OHLER, PhD, PE PHOTON RAO, JD, PhD mh Herkeey pom Q Ent a: keley [0 aoerats. evolva Lygos Existing Institutional, Strategic and Government Investor Base wow C2 fe G Oe Be @isenas a PROPRIETARY and conFioentiact | LYWGOS
Slide 12: Lygos Biotech Platform has Created a Pipeline of Organic Molecules
12 Lygos Biotech Platform has Created a Pipeline of Organic Molecules Fertilizer / Biodegradable Diapers . 1 ASPARTIC 1 / Detergents et A (0 leeeeen------ / \ PHYTOCBX Fermentation L —_— = Consumer / Patented —<-@ : | cis “Yeast” Bene wy i i 7 ww Biodegradable Toxin Free / \ Plastics f MALONIC y < H
Slide 13: Vertical Integration to Accelerate Biotech Platform
Vertical Integration to Accelerate Biotech Platform Into Gola: tion > dOIU y LYGOS G Sarslies, High Throughput 2 Downstream Engineering Processing synthetic Biology proprietary and conrioenriace | LY GOS
Slide 14: Biodegradable Products We're Making Today
14 Biodegradable Products We're Making Today Unique Products for Multiple End Markets Scale e Crop Yield dna a ali Fertilizer Waterireaunent Moisturizer Conservation Cosmetics Detergent Ingredient B There are extensive uses for aspartic acid monomers. FSl is currently making them efficiently and wit
Slide 15: Go-to-Market Strategy Focused on Highest Margin Products
15 Go-to-Market Strategy Focused on Highest Margin Products Profitability at All Stages Higher Prices a > Lower Prices Lower Volumes = — Higher Volumes } 1 ‘SUPERABSORBENTS DETERGENTS WELNESS Foon ASDINES FERTILIZER ADDITIVES INGREDIENTS Opportunity to Enter Larger Markets (by volume) as Platform Sc
Slide 16: AGx FSI Agriculture Business: Products Selling Strongly Today
AGx™ FSI Agriculture Business: Products Selling Strongly Today te solutions on the farm Enhanced solutions for turf, ornamental, home and greenhouse Increased yield on e Superior Solutions More than 2 million acres Foliar-Pak in 2021 Greener turf, tougher roots Colonise’ Bio Faster growth, higher yi
Slide 17: Lygos and FSI Combination Well Positioned to Supply Growing Demand
Lygos and FSI Combination Well Positioned to Supply Growing Demand for Sustainable Solutions — Ca = Sustainable Feedstock Biodegradable Product End-to-End Green Product Suite Replaces petrochemical feedstock Fully biodegradable alternatives to Significant demand for combined, fully and eliminates be
Slide 18: Summary
Summary Transaction Summary = Lygos & FSI’s merger plan to create leading sustainable products company = Company is well capitalized with $160M on balance sheet, representing over $4.00 in cash per share outstanding immediately post transaction = Lygos uses biotech to make sustainable ingredients wi
Slide 19: Appendix
APPENDIX 19 LYGOsS
Slide 20: The New Biosynthesis Paradigm
The New Biosynthesis Paradigm Chemical Synthesis Paradigm Biosynthesis Paradigm ; 5 > /— é Petrochemical feedstock > /, ictal ugar et, \ | engineered yeast </ gore me 30 ee aay 1 YL Environment ee 1 Energy intensive 1 Complex facilities 1 Harsh chemicals | eo WY Sustainable { O | a + Be Biodegradabl
Slide 21: Harnessing Breakthrough Technologies to Create Marketable Products
21 Harnessing Breakthrough Technologies to Create Marketable Products The microbe enabling production The physical tools, software, and Acritical tool usedto solve Avalue-multiplierlayered on of compounds genetic info needed for high- complexbiological & top of the biochemicals throughput R&D materi
Slide 22: The Lygos Platform
The Lygos Platform ° " ° Polyaspartic _ Products | . Lt Aspartic Aci { Other Organic Acids Isobutyric Acid A + @ Malonic Acid PROPRIETARY and CONFIDENTIAL 22 LYGOS
Slide 23: Technology Differentiators and Expertise Throughout Bioengineering Cycle
23 Technology Differentiators and Expertise Throughout Bioengineering Cycle Research Development Manufacturing Operations Pathway Discovery Microorganism Design Production Scaling ed etPoiicion = Simulation and Al to discover = Selection of host organism = Industrial scaling of biological = Polymeri
Slide 24: Strong Portfolio of Intellectual Property
Strong Portfolio of Intellectual Property From R&D to Production Microbes and Pathway Fermentation Process, vY Combination of yeast and v Enzymes for shaping v Highly controlled v Non-plant derived v Two decades of expert bacteria strains molecules and fermentation process phytoCBx system, trade sec
Slide 25: Blue Chip Customer Base with Significant Whitespace Opportunity
Blue Chip Customer Base with Significant Whitespace Opportunity @ hak Historical Revenue Split ($17) @ hak: Product Applications and Key Customers $40 Sustainable Agriculture Leading Agricultural Product Distributors $35 $31 Premium European Wine Preservative Supplier Leading Turf and Ornamental Com
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